Comments on the Market by Mr. Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities

Nifty reclaims 8300, CPI and IIP data eyed

“Indian benchmark indices showed positive momentum today ahead of crucial CPI and IIP data expected in evening. Metal stocks were down taking weak cues from Chinese markets and shares of Cairn India and HZL were down on media reports of their merger with Sesa Sterlite. Banking lifted the index as inflation expectations buoyed the sentiment while post stellar Q3 performances by Infosys IT stocks were up. Energy and metal stocks were down with global oil prices dragging ONCGC and Reliance. Coal India was down close to 5% on media reports of a govt. divestment of 10% stake in the company. On global front Fed policy latter this month was eyed while Wall Street closed on a weak note weighing on Global markets. Media reports suggested ECB may start QE soon which lifted European markets and kept major Asian indices in green. Buying was seen at lower levels on Nifty.”, Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian benchmark indices showed positive momentum today ahead of crucial CPI and IIP data expected in evening. Metal stocks were down taking weak cues from Chinese markets and Cairn India and HZL were down on media reports of their merger with Sesa Sterlite.  Banking lifted the index as inflation expectations buoyed the sentiment while post stellar Q3 performances by Infosys IT stocks were up. Energy and metal stocks were down with global oil prices dragging ONCGC and Reliance. Coal India was down close to 5% on media reports of a govt. divestment of 10% stake in the company. On global front Fed policy latter this month was eyed while Wall Street closed on a weak note weighing on Global markets. Media reports suggested ECB may start QE soon which lifted European markets and kept major Asian indices in green. Buying was seen at lower levels on Nifty.

Other Asian Markets

Major Asian indices were mostly in positive as market participants expected ECB to begin QE soon to spur growth while payrolls data and wages in US kept Wall Street under pressure in previous session. Asian markets capped gains taking negative cues from US markets with Chinese indices witnessing a selloff.

Commodity Outlook

Commodity Market was very volatile in the morning session; Gold and Silver Prices opened on a strong note but cooled off as the session progressed due to the recovery in Equity Markets. Crude Oil Prices continued to hit new lows in the morning session while Natural Gas Prices also remained weak due to uncertain weather forecasts in USA. Base Metals showed strong signs of recovery in the morning session as recovery in Equity Markets provided their prices support

Evening outlook:

Gold and Silver Prices are expected to be weak in the Evening session; Crude Oil and Natural Gas are expected to rebound modestly while the recovery in Base Metals is expected to continue.

Stock Recommendations:

PNB  – Buy at Rs. 208.95(CMP); Target -Rs. 211.50; Stop Loss –Rs. 207.50

IndusInd Bank - Buy at Rs. 829.45(CMP); Target -Rs. 838.00; Stop Loss –Rs. 821.00

Bharti Airtel - Sell at Rs.348.95(CMP); Target -Rs. 345.00; Stop Loss –Rs.352.00

Sectors Snapshot

Bank Nifty: Bank Nifty was up as Rupee continued to show strength against the green back and market participants awaited major CPI and IIP data. Downward inflation trajectory was expected which helped banking stocks. RBI policy later this month remained in focus.  PSB s were top gainers today.

CNX IT: Following strong Q3 numbers by Infosys IT stocks remained in positive territory with major stocks lifting the index. Rupee movement though restricted the gains while QE in Europe was expected by market participants lifting the sentiment.

CNX Energy: Energy sector lost nearly 100 points in the session today despite positive mood in the markets as crude oil continued to hit fresh 5 year lows in the session today; Most of the stocks in the sector closed in negative while Cairn India was the biggest loser in the sector losing nearly 3%.

CNX Pharma: Index opened marginally up and traded flat tracking positive movement of benchmark indices. Inflows were seen across all the sectors. However, profit taking was seen in Cadila Healthcare falling over 2%. Index was supported by Dr. Reddy's and Lupin.

Market Movers

Gainers

HUL: Shares was consecutive up for 6th straight session hitting life time high after several brokerages houses upgraded the stock.

IndusInd Bank: Shares rose over 3% ahead of the Q3 earnings to be releasedtomorrow. Expectations of PAT to rise by 30% on year.

Losers

Coal India: Shares fell over 4% after a report by ET that the govt. plans to raise about 240 bn rupees from sale of 10% stake.

Cairn India: Shares fell on the back of a PTI report that the company may be merged with Sesa Sterlite. Shares were down over 3%.

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